Our Prime Minister announced an Rs.20 lakh crore package which is 10% of India’s GDP aimed to revive the stalling economy and to make a self-reliant on 12th May 2020. He laid out a comprehensive vision after consulting with several sections of the society. Five pillars of self-reliant India are Economy, Infrastructure, System, Demography, and Demand. He said that the details of the economy package will be delivered by our Finance minister.
Objective: The Economic package is to spur growth and enhance demand and to create a Self-reliant India.
Finance Minister Nirmala Sitharaman unveiled the details of the economic package to uplift the economy.
Some of the major key points discussed on Economic Package India-20 Lakh crore are:
- Due date of Income-tax return for the financial year 2019-20 to be extended from July 31, October 31, 2020, to November 30, 2020. The tax audit extended from September 30 to October 30.
- To increase the flow of credit-Special liquidity scheme for Rs.30,000 crore for NBFCs/HFC/MFI in both primary and secondary markets.
- MSME (Micro Small Medium Enterprises) Definition has been changed.
- The investment limit for MSME is revised upwards from 25 lakhs to RS.1 crore.
- Rs.3 lakh crore collateral-free loans for MSME, having a 4-year tenure and moratorium of 12 months. These loans will be available until October 31, 2020. It will help 45 lakh units to continue jobs and safeguard the jobs.
- One time liquidity infusion on Rs.90,000 crore has been made for the Power distribution companies. This will benefit customers.
- A major relief to contractors, all central government agencies to provide an extension up to 6 months without cost to the contractor, to obligations like completion of work covering the construction and goods and services contracts.
- EPF(Employee’s Provident Fund) contribution has been reduced for Business and workers for 3 months.
- Global tenders to be disallowed in government procurement tenders for up to Rs.200 crore. This will lead to self-reliant India.
- All pending refunds to be issued immediately- for Charitable trust, Corporate business, and professions.
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